Euro: USD/EUR (EUR=X) controlled by the Fibonacci level at 1.1327

Euro: USD/EUR (EUR=X) controlled by the Fibonacci level at 1.1327

Euro: USD/EUR (EUR=X) controlled by the Fibonacci level at 1.1327

Renewed concerns over Brexit are putting pressure on the Euro shortly after the U.S. opening. Earlier in the session, the single-currency hit its highest level since March 5, but there was no follow-through to the upside as traders began to square positions after the latest news on Brexit failed to offer much details on where Britain’s relationship with the European Union stands.

The main trend is down according to the daily swing chart. A trade through 1.1420 will change the main trend to up. A move through 1.1177 will signal a resumption of the downtrend. Traders are currently trying to determine whether to continue the counter-trend rally, or resume the sell-off.

The main range is 1.1420 to 1.1177. Its retracement zone at 1.1298 to 1.1327 is currently being tested. Trader reaction to this zone will determine the near-term direction of the Forex pair.

The new short-term range is 1.1177 to 1.1342. If sellers take control then look for a break into its retracement zone at 1.1259 to 1.1239.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.14.

The projected upper bound is: 1.14.

The projected lower bound is: 1.12.

The projected closing price is: 1.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.0002. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 47.10. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 150 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -7. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX EUR= closed down -0.003 at 1.130. Volume was 35% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
1.133 1.134 1.129 1.130 94,851

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.13 1.14 1.15
Volatility: 8 7 8
Volume: 136,809 147,861 143,442

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX EUR= is currently 1.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of EUR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on EUR= and have had this outlook for the last 5 periods.

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